Tuesday 9 May 2017

About Reliance Jio in detail.


TABLE OF CONTENTS:

INTRODUCTION ....................................................................................................................................... 3
THE OVERALL MARKET SIZE, GROWTH TRENDS AND FUTURE PROJECTIONS ............... 4
MARKET SIZE .................................................................................................................................................. 4
GROWTH TRENDS ............................................................................................................................................ 4
FUTURE PROJECTIONS............................................................................................................................ 5
THE MAIN MARKET SEGMENTS; TARGETING, POSITIONING .................................................. 6
SEGMENTS ...................................................................................................................................................... 6
TARGETING ..................................................................................................................................................... 6
POSITIONING ................................................................................................................................................... 6
MAJOR MACRO AND GLOBAL ENVIRONMENTAL INFLUENCES ON THE MARKET AND
CRITICAL SUCCESS FACTORS ............................................................................................................. 7
CRITICAL SUCCESS FACTORS ............................................................................................................................ 7
INDUSTRY ANALYSIS ALONG WITH PORTER’S 5 FORCES MODEL ......................................... 8
INDUSTRY ANALYSIS ...................................................................................................................................... 8
PORTERS 5 FORCES MODEL .............................................................................................................................. 9
COMPETITOR ANALYSIS ..................................................................................................................... 10
ANALYSIS OF 7PS OF MARKETING WITH STRENGTH WEAKNESS ........................................ 11
7PS OF JIO ................................................................................................................................................ 11-12
SWOT ANALYSIS ........................................................................................................................................... 13
BIBLIOGRAPHY ...................................................................................................................................... 1











Introduction

In the year 2010, Reliance acquired Infotel broadband service limited and entered in broadband
services market. At present Reliance Jio infocomm LTD, solely own by RIL for 4800 crores. The
organization has as of late increased fourth era (4G) licenses for working crosswise over India. It
is the primary telecom administrator to hold container India bound together permit. This permit
approves RJIL to give all media transmission administrations aside from worldwide portable
individual correspondence by satellite administration. RJIL holds range in 1800 MHz (crosswise
over 14 circles) and 2300 MHz (crosswise over 22 hovers) fit for offering 4G remote
administrations. (Rahate & Shaikh, 2014)
Dependence Jio is four circumstances speedier of 3G and 16 times the speed of 2G. This is relied
upon to bring about issues for 3G players, for example, Bharti, Vodafone and Idea, who have paid
an enormous cost to purchase the range RJIL is setting up a whole advanced environment with
expressed objective to break the computerized separate between "India" also, "Bharat" and push
India into worldwide administration in advanced economy. The biological system comprises of
pan India rapid system, a wide assortment of uses and administrations - from news, excitement,
installment, business, social insurance and training – and rich substance. RJIL has made a legacy
free, cutting edge voice and broadband system which can be flawlessly redesigned even to 5G and
past. It will be the main organization on the planet giving people to come advanced administrations
over a conclusion to-end all-IP organize at this scale.
(Kalyani, 2016) (Reliance Jio Infocomm, 2016)


1. The overall market size, growth trends and future projections

Market size of Jio is the second telecom player. In which Jio is capturing more than 23% per cent
of the Indian market and per some mobile app like True caller and True insights data Jio as grown
rapidly in the latter half of 2016 that is over 16.2 million subscribers in November and taking the
total subscribes base to 51.87 million after launching the services. And as per telecom Regulatory
Authority of India, telecom subscriber has grown over 1.12 billion and large number were credited
to Reliance Jio Infocomm Ltd and TRAI data also state that Jio is leading in mobile broadcast
segment which is followed by idea, Artiel and Vodafone and in internet data services also Jio leads
with the 42 percent users having activated 4G (KAUR & MALHOTRA, 2014) (IANS, 2017)
(source: TARI 2016 Srivastava and Anand)


Growth trends

Telecom industry is a booming industry which contributes 3billion per day revenue. Some people
say that the organization are continuously reducing cost and their expenditure which accelerate
growth in some segment of telecom industry and they are penetration on fiber in the access network
and quick development and deployment of associated technologies. At the present era, all telecom
operator following 3 key points customers who buy the product, operators who sell the product
and equipment vendor who make services available (Kumar, 2014)
(Advise analytics, 2017)
The future projection of Jio was decided at annual general meeting which included tariff plan
and tariff packages focused on specific categories of users and Jio is also planning to file its tariff
plans with (TRAI) Telecom regulatory authority of India and special tariff plan for LYF customers
to make these handsets more attractive and opened the preview offers to almost all leading
smartphone brands. Reliance Infocomm has tied up with around 20 smartphone brands to bundle
Jio sim cards and mainly targeting primarily RS 3000-10000 segment smartphone which will still
contributes around 75% of sales in India and to raise their share by 45% by value and company is
planning to offer services at substantially lower rates than rivals. Jio will make services accessible
and affordable to all consumers (Mukherjee & Gupta, 2016)
Jio, was exhibiting chatbots of its own that could soon discover their way to an Android telephone
close you. At the GSMA Innovation City in Hall 4, Jio was showing four chatbots - JioNews,
JioWiki, JioDine, and JioCafe, running inside the Jio4GVoice application - that Jio clients will
soon have the capacity to connect with to find solutions on their general inquiries, to get up to
speed with news, or to consider eateries and book a table.
(Staff gadget 360, 2016)

2) The main market segments; Targeting, Positioning

IO wants to tab all the
major market segments in
India and sees a massive
potential in the areas and
mainly focusing on tab with
VOLTE feature phones and
also seeing that 2G featured
phone is still big picture so
developing two new feature
phones which is priced at near
to 1000 to 1500 and they
function like smartphone and
can access data the only thing
missing is touchscreen and also
segmenting people by new
device will be aimed first and
also first time data users at
present they are segmenting
there consumer by LTE
technology users which is new
segment because 4G
smartphone can cost around
4000
(Aulakh & Khan, 2016)

TARGETING- JIO focuses on the corporate organizations, as MNC or App based taxi specialist

organizations alongside sustenance conveyance administrations and numerous increasingly that
requires web association from application. For an ordinary people 149 for 300 MB or 500 for 4GB
is an excessive amount of internet. The next phase of target customers for Jio will be people
using Feature Phone. Reliance Jio target to bring involved 100 million consumers by rolling out
4G network across the country and added to it translate data usage of 250 crore GB per month. Jio
also targeting and tie up with smartphones like Vivo,Gionee, Karbonn and Lava for expanding its
unlimited calls and high speed mobile broadband trial offer to 4G users (Bhatia & Palepu, 2016)

Positioning fundamentally involves applying the targeting.
Product (premium, basic)

Price (premium, low price, value)
Distribution (intensive, selective, exclusive)
Promotion (prestige, fun, powerful) (UK ESSAYS, 2015)
Jio positioned by its free sim and offering free voice calls minutes and high speed data made
it identify different from its rivals and gained more status. And being operationally excellent
J
and providing reliable services to the consumer at free of cost and by technologically it is
providing the most advanced products currently available (BHULLAR, 2016)

3) Major macro and global environmental influences on the market and Critical Success
Factors

RJio is further focusing on data rather than voice which is the primary source of income which
made drastic change in an Indian telecom operator. And RJio rivals like Vodafone, Artiel, idea
and Bsnl earn more from voice services which is around three fourth around Indian shares or total
market share of telecom industry. RJio was stated that biggest start up in the world with a heavy
investment of capital of more than 1,50,000core. So the telecom market reacted like Bharti Airtel
one of market leader of telecom industry announced that it will reduce the price of internet services
by 80% which is 51 per GB and Vodafone decided to revise its offering of internet and also
announced to invest Rs 47,700 crore to expand and deploy latest technologies that is 4G and 5G
and BSNL planning to match with RJio offering tariff by tariff and RJio announced that BSNL
customer can use RJio network while roaming and RJio customer can use BSNL’S 2G network to
make voice call ( Sathe 2016) and the entry of RJio will also rush market in merging and strategic
alliance (Guru, 2017) (Bureau, 2017)
The main critical success factor for RJio is that his competitor like BHARTI,IDEA AND
VODAFONE who has maximum market share of India that is three-fourth of telecom industry and
they have heavily invested in second generation (2G) and third generation (3G) technologies and
only RJio who has full-fledged investment in new technologies like 4G and it is one of telecom
operator with fully Data centric services and it is completely based on voice over long term
evolution (VoLTE) which permits voice transferred over internet protocol and with the fastest
speed as compare to the old or traditional network and RJio has advertising by prime minister
Narendra modi endorsing offering is also one of the success factor and JIO products and services
were now recognized as game changer and revolutionary and its offering unlimited voice call and
also attractive tariff plans made the RJio as challenger or 2nd market leader in India
(Bhatia & Rao , 2016) (JOSH, 2016)

4) Industry Analysis along with Porter’s 5 Forces Model

The Indian telecom market has five giant players ensuring
enough competition but there will not fragmentation of
spectrum. India is the world’s second mobile services
market after china and Indian telecom industry has been
rushed by JIO’s free calls and internet plans which made
market to slash tariff at cost of profit and there will be many
consolidation playing out in market of telecom like Bharti
Airtel told to acquire TELENOR’S which make the market
share of company to be raised by 35.6% and Vodafone &
Idea are planning to be merging their business and can create
biggest telecom operator in India with about $12 billion in
sales and Reliance communication has signed to merge with
Aircel and The Telecom Department tried a huge number of
changes in 2016 went for hopeful simplicity of working
together. This involved planning the privilege of route tenets
for speedier telecom arrange take off, range harmonization,
expanding the accessibility of range through closeout and
presentation of Aadhar-based eKYC for new portable
associations
(Oommen, 2014)

(Bureau, 2017)
1. Intensity of competition among rivals

Among the telecom sector Airtel is the strongest rivals like BSNL & VODAFONE. Before
there were only two of them but now there are more than ten competitors as shown in fig. and
these company providing same or can say similar services with the same capabilities and the
strong presence of competitors is a major threat for the survival and providing innovative
products and services to the customer which directly means that it must also provide the same
to customers the rivalry to RJio are Bharti Airtel, Vodafone, BSNL, Idea, Tata
communication, Aircel, MTNL


2. Bargaining power of buyer

Buyer will not purchase the products in bulk but also can change the company or can switch
for who are providing better quality of services and coverage and rates and in
telecommunication industry is high due to lack of differentiated products and the strong buyer
power will reduce the cost prices in the industry though not to the level of its competitors
3. Threats from substitutes
In telecom industry, the products are easily available is a great threat for the survival and it
can cut the prices of its product to stay in the market and the rate of growth is very low as
compare to other industry. Google Talk, skype and email have emerged as substitutes to
mobile services
4. Potential entry of new competitors
At present the technologies of telecom industry are so high to invest and required heavy capital
to start so the probability of new entrants is very limited and the rapidly changing technologies
make it difficult for new entrants to cope
5. Bargaining power of suppliers
To the extent, the providers are concerned, the advantages and disadvantages to all specialist
organizations are equivalent that might be in human asset or items.
(Majumdar & Bhattacharya, 2014)

5) Competitor Analysis

o Singapore Telecommunication Limited is one of the key stakeholder in Bhati Airtel
announced that it will sign an agreement with its major owner Temasek Private limited
company to own 7.39% stake in Airtel telecom limited it’s a deal worth 659.51$ million
o One of the largest Malaysia’s largest telecom firm that is Axiata digital has made entry into
Indian market by investing 100 crores in Bengaluru
o Indian government is also gaining from the sale of spectrum in 16-17 and achieved a set target
of 3.5%
o The subsidiary company of Vodafone that is Vodacom SA has entered with an agreement
with Tata communication to buy the asset of Tata communication
o Indian fourth largest mobile service provider that is reliance communication has acquired
Sistema Shyam Teleservices the unit of Russian company which include payments to
government for spectrum
o Ericsson one of the Swedish telecom company which make equipment has announced that it
will launch a new radio system in Indian market to provide 5G services in future
The above facts which made clear that the telecom subscriber has expands noticeably in India.
It is a situation that the market with lot of alternative to its consumer it straightly tells that it is a
buyer market. The stable people are enjoying the services of voice and internet from respective
providers
(Kalyani, 2016)
Though, the delay in the dispatch of RJio's administrations has implied that top administrators,
for example, Bharti Airtel BSE 1.22 %, Vodafone India and Idea Cellular BSE 0.43 % have
extended their 4G benefits crosswise over geography as well as brought Data costs down to hold
and pull in new consumers, narrowing the extension for RJio to play the value amusement and
beat customers
(Gupta, 2016)


6. Analysis of 7Ps of Marketing with

Strength weakness

PRODUCT: If we contrast the item and officeholder

players in the Indian Telecom industry then we
found these extraordinary things in Reliance Jio
o RJio works just on 4G and would have the
capacity to boost 5G, 6G
o RJio is completely VoLTE based and that
implies voice calls would be made through Data
network
o Free voice calls and free roaming is the core
USP (Unique Selling Proposition) of Reliance RJio
o RJio consumers will appreciate Free welcome
offer till March, 2017. This contains free Data,
voice calls and helpful applications and substance.
RJio would utilize that opportunity to make
consumers familiar with RJio's elements and to
moderate the interconnection issues with another
administrator. Deliberately, it can be to pick up
piece of the pie as fast as could be expected under
the circumstances.
o eKYC would empower clients to get RJio SIM initiation in 15 minutes. Aadhar card would
be utilized for that. In any case, Airtel and Vodafone additionally had this administration.
o Jio TV, Jio Chat, Jio Cinema, Jio Music, Jio Mags, Jio Xpress News, Jio Money, Jio Security,
Jio Newspaper, My Jio, Jio Chat Messenger, Jio 4G voice, Jio Drive and JioSwitch

PRICE: RJio has guaranteed to its consumers to get the least expensive (low value) Data even

after the finish of welcome offer.
o As low, as in scope of Rs. 50 for each GB. And additionally, giving 8GB of Wi-Fi access at RJio Wi-
Fi hotspots, and boundless utilization around evening time, so it unquestionably works out to an
exceptionally sensible sum, and under that Rs. 50/GB figure once you consider that.

PLACE: RJio is an Indian company with Pan-India presence. For the accessibility of item circulation

channels ought to be all around arranged.
o RJio has arranged circulation procedure in such a way, to the point that, however RJio is new
participant yet at the same time it as of now has a compass to 18000 urban communities and
more than 2 lac towns crosswise over country.
o RJio is sense to cover around 90 percent of India up-to March, 2017. RJio has emphasis of having
around 1 million of Wi-fi hotspots till the mid of 2017 and duties give client to have additional
information at Wi-fi hotspots.
o Wi-fi hotspots for system would be school, universities and other open places (that is another
methodology to inspire more consumers to change to RJio)

PROMOTION: RJio has commenced an aggressive marketing strategy to create

positive brand awareness, Promotion assumes a notable part in making pull from consumer side,
and if your item obliges mass open then ATL (Above The Line) channels are chosen and RJio has
made a honorable showing with regards to by making technique much before dispatch of RJio
on September, 2016.
o Reliance assumed control TV18 organize for around Rs. 4000 centers in May, 2014. Network18
claims TV channels (counting CNBC TV18, CNN-IBN, CNN Awaz), sites (firstpost.com,
moneycontrol.com), magazines (counting the permit for Forbes India), stimulation channel
(Colors, MTV and Home Shop Entertainment) among different organizations
o This aided Reliance to get irregular state of media scope through this(TV18) and other media
houses.
o In the advancement procedure, RJio has made Shahrukh Khan as its brand ambassador. TVC,
Banners, hoardings and print media ad. On advanced stages, online networking advancement
was additionally done.
o 'RJio Digital life' is the slogan utilized by brand which is adjusted to #Digital India battle of Modi
Government, additionally it is speaking to the youthful generation (18–35 age aggregate)
utilizing electronic gadgets and web for its day by day exercises
o At six cricket stadiums during ICC World Twenty20 RJio offered free internet WIFI and each one
of its services free till the end of the financial year 2016.
(Lin, 2011) (Bhasin, 2017)

People: Depends on the total employees and training and development and maintaining strong

relationship with intermediaries are the focus area to be considered
o Jio is service industry and which involves a high level of people interaction and it is one of the
important tool to use this resources efficiently to satisfy customer
o Dedicated and passionate workforce
o Reward and recognition
o Employee engagement

Process: The service process of Jio is very easy customer can avail it very easily

o Jio has customer care support number which can be dialed from any part of India
o For smoothen the process flow by IT and Data warehousing. IT will help servicing large no of
customer efficiently and bring down overheads.


Physical evidence

o Sim card, recharge voucher
o Service outlets
o Digital tv services
o It also includes signage, reports, punch lines etc.

Strengths:

o Brand name
o Outstanding advertising and marketing helped RJio brand to strong launch
o RJio has strong Pan India presence and has an operation more than 22 circles
o Apps of RJio as a unique feature which offer movies, games, chat messenger, shopping
news etc. under one roof
o Advantage of cost
o Pricing power
o Strong management

Weakness:

o Delay in launching
o The campaign launch by Jio was controversial because it was showing the image of PM
o Customer Base not available as commercial services
Opportunities:
o New services
o Large scale availability of smart phone
o Emerging market
o New products
o International expansion
o Attention on customer services and MNP can help RJio to overcome competition

Threats:

o Intense competition
o After completing of free services of RJio people would not use Jio
o Existing player have a strong presence and have loyal customer which would be difficult
to address to
o Mobile number portability (Satinder & , 2015) (Stork, 2012)


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